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GENERAL LIABILITY INSURANCE

Your business insurance plan will probably include a commercial general liability policy.

In fact in Texas general liability is probably the most common business insurance policy.  The general liability policy pays for damages to others that you are legally obligated and the occurrence is a covered occurrence.

General liability insurance will also pay for your defense.  It is not unusual for attorney and other defense costs to exceed the actual damages.  As a result, a paid defense is a primary reason to purchase general liability.

There are many endorsements and policy forms available.  Your general liability policy could be a part of a package policy or be issued as a stand alone policy.  As a result, this will be a generalization.  Please check your actual policy for exact policy coverages, exclusions, and limitations.

When dealing with business insurance you need to realize that many exclusions and limitations are due to the excluded coverage is provided on a different insurance policy

Even though the general liability policy has numerous exclusions and limitations, this policy is quite broad.  Most general liability policies will include the following coverage parts:

Premises & Operations which is the protection against your negligence regarding your ownership of property and your business operations.  You might hear an insurance person refer to this as “slip & fall” coverage.
Products & Completed Operations which refers to coverage on your sold products or finished work.

Personal and Advertising Injury that covers you for libel and slander.

Medical Payments to Others which is a courtesy coverage.  Medical Payments to Others has a low coverage amount and your negligence does not need to exist.  It is primarily used to avoid lawsuits from your visitors.

Fire Damage Legal Liability.  This coverage may be named differently, but it provides coverage for fire damage to the facility you rent that is in your care, custody and control, and due to your negligence.

There are many variations of these policies.  

Which route to choose is dependent on your business.  

For instance: Will you be required to provide proof of insurance in the form of a certificate of insurance?  If you do need certificates processed, how many?  If so, do any of the certificate holders require special writing on the certificate?  Each one of these questions could determine which insurance company is the best for your business.

A word of caution, the general liability policy is an auditable policy.  The insurance company has the right to inspect your records to make sure an accurate premium has been charged for your business exposure.  The audit will usually be performed within a month of the policy expiration, but the company may wait up to three years.  Also, for particular classes of businesses, such as contractors, an interim or mid-term audit may be performed.

A common mistake consumers make regarding their general liability is acquiring coverages and limits that required of them by a lease or contract.  Instead you should acquire the insurance that satisfies both our contractual obligations and your risk exposure.  As a result, we need to know a lot about your business so we can assist you in the best decisions.

 General Liability Insurance Houston TX